Capital Flows

“Is China Turning Latin? China’s balancing act between power and dependence on the wave of global imbalances”Andrew Martín Fischer

March 8, 2010

While it would seem that China’s huge surpluses amid sustained growth eliminate any comparative relevance to Latin America, the paper argues that analogous vulnerabilities exist. Volatility on the capital account and China’s relatively subordinate position within the massive rerouting of international production networks via China, point to this, In fact, overly optimistic appraisals of China’s strength underestimate many of its persisting structural vulnerabilities as a contemporary developing country and distract attention away from important lessons for other developing countries.